Open interest for AVAX has been rising steadily over the past month, with the price of the altcoin also rising. The result of this continued climb is the fact that open interest has now increased to May 2022 levels, a development that could lead to a huge surge in the price.
AVAX Open Interest Rises to $224 Million
According to Coinglass data, AVAX open interest has now reached $224 million. The website shows that open interest increased by more than 10% in a 24-hour period, bringing total open interest above 10.04 million AVAX.
Binance actually earns about half of this open interest totaling 4.48 million AVAX, worth just over $100 million. This shows that a good portion of the demand is coming from crypto exchanges. The total open interest also saw an increase of 9.94% in the 24-hour period.
Bybit exchange has the second highest open interest at 2.04 million AVAX worth $46.09 million. BingX comes in third place with 1.24 million AVAX worth $27.59. But none of these exchanges caused the biggest surge in the last day.
The biggest jump in open interest was recorded on Bitmex exchange as it increased by 17.78%, bringing the crypto exchange’s total open interest to 55,340 AVAX with $1.53 million. Overall, open interest in altcoins has increased from $82.8 million on October 20 to $224 million on November 20, which means open interest has increased by 170% in one month.
The price of the token remains above $22. Source: AVAXUSD on tradingview.com
Can the price cross $30?
The last time AVAX open interest was this high, the price was trading much higher, opening the possibility for a rally above $30. As CoinGlass data shows, the last time open interest surpassed $220 million was in May 2022 when the price was still trading above $50.
Additionally, a look at AVAX’s historical performance shows that whenever open interest has increased sharply, the price has followed suit. This was the case in August 2021 when open interest increased from $14.53 million to $123.5 million, and the price of AVAX increased accordingly from $19.15 to $55.
If the same trend occurs here, $30 could just be the starting point for AVAX price. After all the historical performance, the current volume of open interest puts the fair value of AVAX at around $40, meaning the altcoin could be trading well below its fair value.